23andMe Restructures, Cuts 40% of Workforce and Ends Therapeutics Division Amid Financial Struggles
Layoffs and Restructuring:
23andMe has announced that it will lay off 40% of its workforce, approximately 200 employees, as part of a restructuring effort to focus on its core consumer business and research partnerships124.
End of Therapeutics Division:
The company will discontinue its therapeutics business, including cancer drug research programs, to cut costs and ensure long-term success124.
Financial Impact:
The restructuring aims to save the company over $35 million annually, with an estimated one-time cost of $12 million5.
Data Security Concerns:
The financial struggles have raised questions about the security of customers' DNA and other data, which are not protected under the HIPAA Privacy Rule since 23andMe is a direct-to-consumer genetic testing company3.
Previous Data Breach:
In 2023, 23andMe experienced a significant data breach that exposed the data of nearly 7 million users, leading to a $30 million cash settlement in a class-action lawsuit3.
Sources:
1. https://readthejoe.com/business/23andme-is-laying-off-40-of-its-staff-and-ending-its-therapeutics-push-in-bid-to-avert-collapse/
2. https://www.fiercebiotech.com/medtech/23andme-shutters-cancer-drug-research-programs-lays-40-staff
3. https://abcnews.go.com/GMA/Wellness/23andme-dna-data-security/story?id=115818849
4. https://kffhealthnews.org/morning-breakout/23andme-lays-off-40-of-its-employees-ends-therapy-programs/
5. https://siliconvalleyjournals.com/23andme-layoffs-shutters-cancer-drug-research-cuts-40-of-workforce/